The Palace Communities are set up in a typical Server-Client set up. The Palaces are hosted in servers hosted by companies like elite palaces, swss, fpalace, etc., that hold the definitions of the make up the each palace.
Palaces are made up of rooms. Each room has a at least one, sometimes many, background pictures (many are used if the rooms are animated). Also each room typically will contain at least one door out. The door is where the script resides that sends you to the next room, to the gate, or to a previous room. It is the navigation tool of Palace.